FIFA World Cup
Paraguay's efforts to get under the skin of France's superstars worked for three quarters of a game played in front of 68,324 fans in Philadelphia in heatwave conditions.
However, the quality in the French ranks eventually shone through, with Mbappe converting from the spot on 70 minutes after Desire Doue was brought down.
Didier Deschamps' team will now return to their Boston base to prepare for a last-eight clash in nearby Foxborough next Thursday against the Moroccans, who beat Canada 3-0 earlier.
Ranked 41st in the world, Paraguay had ousted Germany on penalties in the last round and were aiming to claim another huge scalp here.
They played with a back five, defended with a low block, and were quite happy to live up to some South American stereotypes with a cynical approach at times.
That led to Mbappe's frustrations getting the better of him as he got involved in a shoving match with Andres Cubas. Moments later, Matias Galarza had a little lash out at the France captain off the ball.
France had practically all of the ball but struggled to do anything with it, being restricted to shots from long range.
Manu Kone had one attempt deflected just wide midway through the first half and another tipped over by Orlando Gill not long after the restart.
Paraguay's attempts to frustrate France were working, but the dark arts would only get them so far.
R16: Paraguay v France
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That was just after the hour mark, and Doue quickly made an impact.
When he attempted to dribble his way through a sea of Paraguayan defenders, he went down under contact from Diego Gomez. The foul was clear and the Uzbek referee pointed to the spot after a review.
Dembele protected the penalty spot as several Paraguay players tried to rough it up. Mbappe then stepped forward and slotted in.
Mbappe's brilliant FIFA World Cup on a personal level continued as he rejoined Lionel Messi as the tournament's joint-top scorer with seven goals.
The Real Madrid striker now has 19 FIFA World Cup goals in total – from 19 appearances – meaning he is just one behind Messi's overall record of 20.
Having won on penalties in the last round, Paraguay's resistance was broken by one this time.
It was not a vintage France performance, but Mbappe almost scored again in stoppage time, and they have taken another step towards their goal.
In 1998 they needed a golden goal to beat Paraguay at the same stage of the competition. And they went on to win that FIFA World Cup.
Sources: AFP, FIFA via Getty Images
